891.51A/2–645: Telegram

The Ambassador in Iran (Morris) to the Secretary of State

73. Prime Minister has refused to accept Millspaugh demands reported my 70, February 3, and states if Millspaugh insists upon them as condition for continuing work, Government will regard this as constituting resignation and will take steps to terminate his contract.

Millspaugh is undecided regarding course to follow. He is on leave and says his only present plan is to delay final action by extending his leave. Contrary to press reports he has not resigned. He feels, however, that Government’s action leaves him almost no alternative to resignation unless there is change of Cabinet or strong support is forthcoming from Department. He hopes for latter but says he is willing to cooperate in any line of action Department thinks desirable. Department will recall, however, that Millspaugh often says one thing and does another.

[Page 546]

The Doctor appears discouraged and apparently realizes magnitude of obstacles facing him. Among them he cites anti-foreign feeling among Iranians on which point I emphatically agree so far as it relates to foreign advisers. This feeling is growing and finding open expression even among Iranians friendly to America.

Millspaugh today suggested that if Department is not prepared to make strong démarche on his behalf, it might be best for entire Mission to withdraw [apparent garble] believes as do I that his own removal will be followed by Iranian action to reduce remainder of Mission to impotence. Bay at has indicated that if the Doctor leaves, he will ask one of other Americans to take his place but I think it unlikely in view of present Iranian attitude that any satisfactory agreement as to powers could be reached or that sufficient cooperation would be extended even if agreement were arrived at between the advisers and the Cabinet. I think this development makes early reply to my 70 doubly urgent. Millspaugh conveys impression he is primarily awaiting statement of Department’s attitude.

Morris